Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2025

Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in the components of AOCI balances for the three and nine months ended September 30, 2025 and 2024:



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, July 1, 2024	$	(591,286)	$	(44,059)	$	(18,828)	$	(654,173)
Net unrealized gains (losses) arising during the period	132,130		66,105		(1,126)		197,109
Amounts reclassified from AOCI	2,663		17,097		—		19,760
Changes, net of tax	134,793		83,202		(1,126)		216,869
Balance, September 30, 2024	$	(456,493)	$	39,143	$	(19,954)	$	(437,304)

Balance, July 1, 2025	$	(466,566)	$	28,622	$	(24,436)	$	(462,380)
Net unrealized gains (losses) arising during the period	76,760		(2,355)		2,074		76,479
Amounts reclassified from AOCI	6,187		4,157		—		10,344
Changes, net of tax	82,947		1,802		2,074		86,823
Balance, September 30, 2025	$	(383,619)	$	30,424	$	(22,362)	$	(375,557)

Refer to table footnotes on the following page.



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, January 1, 2024	$	(601,881)	$	2,624	$	(21,339)	$	(620,596)
Net unrealized gains (losses) arising during the period	138,621		(15,235)		1,385		124,771
Amounts reclassified from AOCI	6,767		51,754		—		58,521
Changes, net of tax	145,388		36,519		1,385		183,292
Balance, September 30, 2024	$	(456,493)	$	39,143	$	(19,954)	$	(437,304)

Balance, January 1, 2025	$	(542,152)	$	(20,787)	$	(22,321)	$	(585,260)
Net unrealized gains (losses) arising during the period	149,063		38,015		(41)		187,037
Amounts reclassified from AOCI	9,470		13,196		—		22,666
Changes, net of tax	158,533		51,211		(41)		209,703
Balance, September 30, 2025	$	(383,619)	$	30,424	$	(22,362)	$	(375,557)

(1)Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022.

(2)Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.

The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and nine months ended September 30, 2025 and 2024:



	Three Months Ended September 30,
	2025						2024
($ in thousands)	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized gains arising during the period	$	98,241	$	(21,481)	$	76,760	$	187,578	$	(55,448)	$	132,130
Reclassification adjustments:
Net realized losses (gains) on AFS debt securities reclassified into net income (1)	2,943		(858)		2,085		(145)		43		(102)
Amortization of unrealized losses on transferred securities (2)	3,785		317		4,102		3,926		(1,161)		2,765
Net change	104,969		(22,022)		82,947		191,359		(56,566)		134,793
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(2,658)		303		(2,355)		93,842		(27,737)		66,105
Net realized losses reclassified into net income (3)	6,001		(1,844)		4,157		24,272		(7,175)		17,097
Net change	3,343		(1,541)		1,802		118,114		(34,912)		83,202
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	2,208		(134)		2,074		(1,126)		—		(1,126)
Net change	2,208		(134)		2,074		(1,126)		—		(1,126)
Other comprehensive income	$	110,520	$	(23,697)	$	86,823	$	308,347	$	(91,478)	$	216,869

Refer to table footnotes on the following page.



	Nine Months Ended September 30,
	2025						2024
($ in thousands)	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized gains arising during the period	$	211,737	$	(62,674)	$	149,063	$	196,717	$	(58,096)	$	138,621
Reclassification adjustments:
Net realized losses (gains) on AFS debt securities reclassified into net income (1)	2,066		(611)		1,455		(1,979)		585		(1,394)
Amortization of unrealized losses on transferred securities (2)	11,379		(3,364)		8,015		11,587		(3,426)		8,161
Net change	225,182		(66,649)		158,533		206,325		(60,937)		145,388
Cash flow hedges:
Net unrealized gains (losses) arising during the period	53,536		(15,521)		38,015		(21,629)		6,394		(15,235)
Net realized losses reclassified into net income (3)	18,584		(5,388)		13,196		73,471		(21,717)		51,754
Net change	72,120		(20,909)		51,211		51,842		(15,323)		36,519
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	(134)		93		(41)		1,558		(173)		1,385
Net change	(134)		93		(41)		1,558		(173)		1,385
Other comprehensive income	$	297,168	$	(87,465)	$	209,703	$	259,725	$	(76,433)	$	183,292

(1)Pre-tax amounts were reported in Net gains on AFS debt securities and Provision for Credit Losses on the Consolidated Statement of Income. Refer to Note 4 — Securities — Realized Gains and Credit Losses for further details.

(2)Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022.

(3)Pre-tax amounts related to cash flow hedges on variable rate loans were reported in Interest and dividend income on the Consolidated Statement of Income.